The U.S. Mint discontinued the penny last year due to rising copper, zinc, and nickel prices making coin production uneconomical.
Soaring industrial metal prices have pushed the cost of producing U.S. coins above their face value. Copper (HG1:COM), zinc (LMZSDS03:COM), and nickel (LN1:COM) prices have made small-denomination coinage unsustainable for the U.S. Mint.
The agency halted penny production in 2023 after costs exceeded one cent per coin. Similar economic pressures may threaten other low-value coins as metal prices remain elevated.
No immediate market reaction was reported, but policymakers may face pressure to address coinage economics amid persistent inflation.